Titan reports record sales of $269.1 million for second quarter; up 28 percent from ‘07

July 30, 2008

Titan International Inc. has reported record sales of $269.1 million for the second quarter, up 28 percent from the second quarter of last year.

Income of $24.4 million from operations also set a company record, up 85 percent from last year. Gross profit rose 54 percent to $41.9 million for the second quarter, and net income was up 168 percent to $13.3 million.

Earnings per share were 48 cents, up from 18 cents in 2007, according to a press release issued Tuesday.

"The first half of 2008 saw higher commodity prices drive a strong demand in the agricultural market," Titan Chairman and CEO Maurice M. Taylor Jr. said in an issued statement.

"This helped propel Titan to record sales levels for the quarter and year to date. Despite high raw material costs, the company was able to show improvement in gross profit by continuing to improve manufacturing efficiencies and better align Titan sales prices with production cost."

Titan Tire Corporation, a subsidiary of Titan International, shipped its first 63-inch off-the-road tire and wheel assemblies Tuesday. These tires, each nearly 14 feet tall and weighing approximately 12,500 pounds, are being shipped to Canada's oil sands for use in mining applications.

"A lot of people in the industry doubted that Titan could build these giant tires in less than a year," Taylor said. "I am happy to prove to them that we are committed to achieving the company's goals."

As part of its earnings report, Taylor said the company also benefited from a preliminary ruling from the U.S. Department of Commerce "affirming that exporters of Chinese-manufactured tires have been selling certain off-the-road tires in the U.S.A. at less than normal value and received subsidies, resulting in duties being imposed on certain imported tires."

The International Trade Commission heard testimony this month and may rule in the third quarter.

The year-to-date-sales at the end of June were at an all-time high of $522.6 million, up 20 percent for the same six-month period last year. Year-to-date net income is $21.4 million, rising about $19 million compared with the $2.5 million figure posted in 2007.